Augusta Overview

Listed on the NZX, Augusta (AUG) actively manages more than $1.7 billion of assets – involving office, retail and industrial properties throughout New Zealand and Australia. Founded by Mark Francis in 2001 – Augusta’s evolution reflects a proven skill and experience in identifying value and moving decisively to turn-around under-performing assets. Augusta's two foundational shareholders hold significant stakes in the company and Augusta Capital as the Manager of assets will often take a stake in the offerings it brings to market.

Augusta Capital has evolved from its origins as a single asset property syndicator – today Augusta is one of New Zealand’s largest property funds management specialists. Augusta no longer just buy assets, they now help fund and/or develop them – targeting opportunities with robust, long-term investment fundamentals spanning multiple sectors of the economy.

Augusta's growth strategy is underpinned by an active management approach – where the scale and diversity of the offerings continues to expand as it grows its funds under management.

Unlisted Funds

Augusta are New Zealand’s most diverse manager of unlisted single and multiple asset funds on behalf of retail and wholesale investors. We proactively manage office, industrial and retail property on behalf of more than 3,000 investors. Importantly for unlisted investors, Augusta have developed a successful secondary market platform which provides liquidity and enables investors to monitor, acquire additional or divest of their holdings. This is an important and distinguishing feature of the Augusta offering.

Listed Funds

Augusta manage listed funds with varied but defined individual focus. These funds provide investors with opportunities to purchase shares in diversified or sector specific NZX listed entities that are actively managed by Augusta.

Secondary Market Sales Platform

Approximately 80% of the units for sale on our secondary platform are sold and settled within the month they are listed, with the majority of the remaining units sold and settled within 45 days (note a purchaser may be found sooner, however we only change ownership of units on the last day of each month).

Our Background / History

Founded in 2001, by Managing Director and largest shareholder Mark Francis, NZX listed Augusta is a leading diversified fund manager with add value and asset management capabilities across New Zealand and Australia. Augusta owns and manages over 114 properties across the office, retail and industrial sectors, with $1.7 billion of assets under management.

With over 4,000 investors, Augusta are the largest property funds management company in New Zealand and hold a forefront position in our “core” single asset fund market. We are widely recognised for our funds management experience and continued ability to extract value across our portfolio through active management.

Our Strategy

Our strategy is to consolidate as New Zealand’s premier property fund manager.

As competition for high quality, investment grade assets increases in the market Augusta’s business model is evolving and diversifying with a continued strategic focus on funds management and the growth of our business. We are no longer just a buyer of investment assets but now also a creator of them. We now can and will get involved in the funding and/or development of investment grade assets across all property sectors to create high quality investment property that we can make available to our investors.

While the future is focused on the acquisition and creation of variety of single and multi-asset funds our key goal remains - investing in high quality assets to provide favourable and stable returns to investors.

Our Philosophy

Augusta has an investment philosophy of maintaining sustainable returns while seeking to protect and grow investor equity. Careful property selection, extensive due diligence and ongoing active asset management are central to this approach.

Active management of the investment includes closely monitoring and growing a strong relationship with the tenant(s), ensuring maintenance and property compliance are fully attended to, while managing the banking relationships closely in order to obtain the best loan structure and interest rates on an ongoing basis.

Our Standards

Industry compliance standards have evolved significantly in recent years. Augusta has worked diligently not just to meet the new requirements, but to be the first in our market to do so.

This has required a substantial investment of time and resource, but has also represented a fundamental pillar to becoming New Zealand’s preeminent property funds management specialist.

We were first in the property industry to market with our Financial Market Conducts Act (FMCA) Licence and are regarded as a leader in Health and Safety monitoring, anti-money laundering compliance and the production of high quality product disclosure statements.

All Augusta’s latest retail syndicates have an independent supervisor to represent investors, and ensures compliance with the Offer documents at all times. Currently, the Supervisor is Covenant Trustee Services.

Our Investment Offers

Augusta carries out commercial property syndicates in accordance with the FMCA. This type of investment enables smaller investors to invest in large commercial properties, with the property being fully managed by the professional team at Augusta.

In addition, Augusta is also beginning to form property funds with its first offering, Augusta Value Add Fund No. 1, established in early 2016. A fund is a group of commercial assets in which investors can buy shares. The types of funds could be Retail, Office or Industrial in nature, or even a new Value-Add Fund.

Our Secondary Sales Market

Augusta offers a Secondary Sales market, whereby if investors wish to sell their interests, the sale is facilitated by Augusta first notifying the syndicate of the available interests and, if necessary, the full database of investors. Augusta will provide background information to the investor wishing to sell, in order for them to price their interest. For more information about this, please contact Kerri Ewart, Investor Relations Assistant - kerri@augusta.co.nz

Augusta Capital

Augusta Capital is a NZX listed company that deals in direct property investment, whereby it holds and manages a core portfolio of office and car parking properties in central Auckland, valued at approximately $100 million.

Augusta Funds Management

Augusta Residential

Multifamily Residential is a hugely popular sector in offshore markets, particularly North America, Japan and mainland Europe. The sector is seen as the next big institutional asset class in Australia due to a shifting market landscape; the closing of the yield spread between commercial and residential sectors and the limited supply and tightly held nature of investment grade commercial property.

Multifamily Residential refers to a multi-unit residential apartment building or medium density housing being owned by a single entity. Individual dwellings are rented to residents, typically on the open market.

Augusta is considering a number of investment options in this space with a view to launching one of New Zealand’s first dedicated residential funds in the near future.

Augusta Value Add No.1

Updated overview of the Value Add No 1 Fund coming soon.

Augusta Tourism

Tourism is hugely important to the New Zealand economy and infrastructure is essential in harnessing the benefits of growth in the sector.

Augusta is in the process of finalising due diligence on a collection of seed assets for what will be an unlisted fund.

The fund will offer investors brick-and-mortar exposure to the New Zealand growth story surrounding tourism and to capitalise on the acute shortage of hotel accommodation being experienced across NZ with a focus on Auckland and Queenstown.

The fund will invest in existing operating hotels and develop hotels where an appropriate risk adjusted return can be extracted for investors.

Augusta Single Assets

Augusta have been leaders in single asset syndication for many years and manage property for over 3,000 New Zealand investors.

Single asset funds provide direct investment opportunities to smaller investors in commercial, retail and industrial property. The day to day management and maintenance of the property is managed on behalf of the investors by Augusta Funds Management.

The number of investors is generally determined by the equity required to purchase the property, divided by the price of each unit being offered. Unit prices are typically $50,000 and investors are welcome to purchase more than one unit in the property. Each unit of the property holds its own title.

Distributions are paid to investors on a monthly basis, and investors are kept up to date on their investment with quarterly reports, Investor newsletters, and Annual meetings.

Should an investor wish to exit the syndication, Augusta Funds Management facilitate and manage a secondary market.

Augusta Industrial

Augusta Industrial Fund Limited is a limited liability company that has been established as an open-ended, unlisted property fund to invest in a portfolio of strategically selected industrial assets that provide both tenant and location diversification within a strongly performing sector of the New Zealand property market.

Initially comprised of four well located industrial assets, Augusta Industrial intends to grow the asset base to approximately $250 million over the next two – three years and maintain a gearing target of 35% – 40%. At this stage Augusta Industrial intends to apply for a listing on the NZX Main Board.*

The target assets will be strategically selected with a focus on the strong performing locations of Auckland, Hamilton and Tauranga. Assets in other major cities will be chosen for their ability to enhance yield and provide further diversification. A focus will be on functional broad user or logistic based warehouses, industrial storage facilities and manufacturing facilities in close proximity to major infrastructure with strong tenant covenants.

The Augusta Industrial Fund provides a broader range of investors the opportunity to invest in the growth story associated with industrial property for a minimum investment of $10,000.

* No guarantee is given that Augusta Industrial will apply to have the Shares quoted or that Augusta Industrial will be listed.

Asset Plus

Asset Plus shareholders’ voted on the 19th March 2018 to externalise the management of the NZX listed Asset Plus to Augusta. Asset Plus (formerly NPT) has been operating across NZ for more than 20 Years.

Under Augusta’s management, Asset Plus focuses on a ‘Yield Plus Growth’ investment strategy, targeting long term total returns that are greater than the benchmark return threshold detailed by the NZX Property Sector Index through value add and active management initiatives.

Asset Plus will invest in a nationwide diversified portfolio of properties, spread across the main centres of Auckland, Wellington and Christchurch, with select provincial exposures where the risk adjusted returns support the overall out performance objectives of the fund.